The purpose of this article is to provide a framework for ensuring
that tobacco products purchases and sale transactions by retailers
within the jurisdiction of the Tribe are understood, undertaken in
compliance with legal obligations under the tax agreement between
the Nottawaseppi Huron Band of the Potawatomi and the State of Michigan,[1] and to ensure uniformity of procedures.

All fee lands owned by the Tribe and lands held in trust
by the federal government for the benefit of the Tribe, which are
designated as tribal and trust lands in Appendix A of the tax agreement,
as the same may be amended from time to time.[3]

The Nottawaseppi Huron Band of the Potawatomi. The term "Tribe"
includes all divisions or subdivisions of the tribal government and
business enterprises, including chartered entities or instrumentalities,
that are wholly owned by the Tribe.

Licensing of retailers. Any retailer engaged in the sale at retail
of tobacco products from any location on tribal and trust lands shall
be required to possess or obtain a retailer tax license from the Tribe
as prescribed in the Chapter 10.3, Retail Sales and Food and Beverage
Tax.

Sale of tax-exempt tobacco products. Only those retailers authorized
by Tribal Council resolution may purchase tax-exempt tobacco products
under the Tribe's tax-exempt quota established under the tax
agreement. Licensed retailers shall be limited to that portion of
the tax-exempt quota as may be designated by the Tribal Council.

Registration conditions applicable to retailers licensed to sell
tobacco products. Any retailer licensed to engage in the sale at retail
of tobacco products shall, as a condition of obtaining that license
and/or registration, be required to agree to comply with the following
requirements:

In addition to maintaining the books and records required by state
law, all retailers authorized to sell tax-exempt tobacco products
to the Tribe or tribal members shall maintain a log of each purchase
of tax-free tobacco products, showing date, type (cigarettes, cigar,
chew, etc.), quantity and brand, together with the name, tribal identification
number and signature of the purchaser. The purchaser's signature
shall not be required if a swipe-card system, acceptable to both the
Tribe and the state, is utilized.

The retailer shall specify the specific location(s) (utilizing facility
floor plans if available) on its premises where tobacco products will
be offered for sale (including the location of vending machines) and
the location(s) where the retailer stores its inventory of tobacco
products; and

The retailer shall permit representatives of the state access to
the retailer's premises for the purpose of conducting inspections,
including unannounced inspections of locations where tobacco products
are sold and stored as well as any vehicles used to transport tobacco
products.

Designation of authorized retailer for tax-exempt tobacco products.
FireKeepers Casino shall be the designated retail outlet that is assigned
100% of the Tribe's tax-free quota for tobacco products and is
authorized to purchase tax-free quota tobacco products from the wholesale
distributor designated by the Tribal Council for resale to tribal
members without payment of the Michigan tobacco products tax.

Purchases subject to Michigan tobacco products tax. Unless exempted
by the tax agreement and this article, all purchases of tobacco products
by tribal members within tribal and trust lands of the Tribe shall
be subject to the imposition and collection of the Michigan tobacco
products tax, which shall be added to the purchase price. Retailers
operating within tribal and trust lands shall remit tax proceeds and
provide information as required under the provisions of the Tobacco
Products Tax Act, MCLA § 205.421 et seq., as it may be amended
from time to time.

The designated retailer shall include the full amount of the
Michigan tobacco products tax in the price of all tobacco products
sold to tribal members in excess of the posted limit on any day or
month.

The daily or monthly limit for tax-free purchases may be adjusted
quarterly by the Tribe's Tax Department, based on the remaining
quota tax-exempt cigarettes available for the balance of the calendar
year. Adjusted purchase limits, if any, will be posted by the Tax
Department at the designated retailer.

Tribal members shall be solely responsible for staying within the
daily and monthly purchase limits posted at the designated retailer.
Tribal members are required to keep track of their own tax-free purchases
of tobacco products.

All sales of tobacco products to tribal members in excess of the
total annual ceiling for tax-exempt tobacco products sales agreed
to by the Tribe and the state shall include the full amount of the
Michigan tobacco products tax.

The Tax Department shall audit the records of designated retailers
to enforce the limits prescribed in this article. Tribal members who
purchase tax-free cigarettes above the daily or monthly limits established
shall be responsible for paying the tobacco products tax on excess
purchases. Civil penalties will be assessed on excess purchases.

Any person who violates Subsection C(1) of this section by selling or giving one or more pack(s) of tax-free tobacco products to a person who is not a tribal member shall be guilty of a civil infraction and shall be subject to a civil penalty of $250. Each transaction by which a person violates Subsection C(1) shall be treated as a separate offense.

Any person who violates Subsection C(2) of this section shall be guilty of a civil infraction and shall be subject to a civil penalty of $50. Each transaction by which a person violates Subsection C(2) shall be treated as a separate offense.

If any provision of this article or its application to any person
or circumstances is held invalid, the invalidity does not affect other
provisions or applications that can be given effect without the invalid
provision or application.